Correct Answer: Correct answer is: (D) Organizational strategy.
Exam Relevance: HRM exams, MBA exams, Management exams
Difficulty: Moderate
Concept notes: External factors affecting human resource management include economic, socio-cultural, and political-legal environments. Organizational strategy is an internal factor.
Common Mistakes: Students may confuse organizational strategy with external factors because it can influence HR decisions, but it is fundamentally an internal factor.
Explanations: External factors are those that originate outside the organization and can impact HRM. Economic factors include market conditions, inflation, and unemployment rates. Socio-cultural factors include societal norms, values, and demographic trends. Political-legal factors include government regulations, labor laws, and political stability. Organizational strategy, on the other hand, is an internal factor that is developed within the organization to achieve its goals and objectives.
Option Analysis: - Option A: Economic factors are external and influence HRM decisions.
- Option B: Socio-cultural factors are external and influence HRM decisions.
- Option C: Political-legal factors are external and influence HRM decisions.
- Option D: Organizational strategy is an internal factor and not an external influence on HRM.
Mnemonic: E-S-P, O-S-I (Economic, Socio-cultural, Political-legal are external, Organizational strategy is internal)